Futuristic Mixing: Programmatic Buying vs Native Advertising

I look forward to the future, especially regarding the increasing rapidity of breakthroughs in technology. I'm excited by the prospect of self driving cars, despite the concerns of some that American car culture may eventually die out. While I was initially fine with that notion anyway, I concede that it is important that with every significant advancement of technology in our lives, we take a moment to reflect upon what is gained, and what is lost. With self driving car, we will be trading in long, comfortable naps while cruising down the freeway for "muscle heads" and American Chopper. Although the path of technology for a concept as singular as self driving cars is at this point somewhat destined to be fulfilled, the crystal ball of digital marketing appears to be a tad murky when it comes to the subjects of programmatic buying and native advertising. Indeed, it seems that the technology of ad buying is progressing toward automation, transforming a task previously requiring human oversight. On the opposite end of paid advertisement, long-form ads are calling for even more personal attention and immersion amongst regular content, weighted with the ethical responsibility to avoid blurring the lines between content and advertisement.

Google self-driving cars are inevitable as technology advances

What does programmatic buying hold for the future of paid advertisement?

The intention behind programmatic buying is to increase the efficiency of ad purchases. Programmatic removes the human element, making data driven purchase decisions with an immediacy that outstrips human ability, bypassing superfluous and obsolete paperwork formalities like insertion orders. As Pete Naylor of NBCUniversal puts it, "Programmatic is a catchall term from behavioral and intent-based targeting to real-time bidding and exchange-based buying of inventory." The effectiveness of specified targeting and speedy buying fosters a buying environment similar to the bidding ad market system Google uses.

Although programmatic buying brings a lot of new benefits to the table, it also draws several legitimate criticisms. One of the most significant obstacles for programmatic is addressing the multi-device lifestyle of the typical consumer. Currently, the market is not optimized for a multi-channel ad buying environment, which leads to a lot of sticky purchase situations. There have also been issues with the transparency of the market. The sellers within the programmatic system have not provided enough information to how effective the content is going to be on conversion rates, or what metrics are the most significant influencers.

Given the current benefits and drawbacks of programmatic, what can we expect to see from the industry in the years to come? A blog post from Richard Joyce forecasts more rapid growth, where programmatic budgets expand, permeation into the video market will increase, and targeting will be refined enough to focus on individuals, as well as traverse the multi-channel behavioral landscape that currently lacks market organization. ComScore, a prominent programmatic seller, also has the future in mind. In 2015, ComScore announced the availability of a package of pre-bid metrics called Trust Profiles that give buyers insight to the quality of content. Evidently, the major qualms with programmatic buying are in the process of finding solutions; the industry is set up for even more rapid growth in the next 5 to 10 years.

ComScore aims to expand product to apply to multiple channels

Native Advertising Continues Rise to Popularity

Another burgeoning aspect of digital paid advertising is native advertising. Native advertising is similar to content marketing in that it provides useful or entertaining information for consumers browsing the web. However, it distinguishes itself from traditional content marketing due to the fact that it is sponsored content, an ad inserted into content with the intent to mimic non-sponsored content. From one perspective, the ideal piece of native marketing would be branded so subtly that the consumer wouldn't be able to detect an advertisement nestled in amongst the content they consume. Unfortunately, this take on the subject can at times be problematic, and may be a hindrance to the growth of the trend.

Indeed, the seamlessness of native advertising's integration with content can be perceived as eerie or creepy; some consumers feel deceived by "shady" marketing activities. To some extent, they're right. Another criticism of native advertising is the lack of adequate analytical support, relative to traditional paid advertisement. Without a major vehicle to gather data on consumers, native marketing is unable to establish a precise target market.

Despite the cogs in the native marketing system, there appears to be a bright future ahead. Producers of quality native marketing understand that there needs to be a "clear dividing line between editorial and advertising content." In a recent example from the podcast "Startup," creator Alex Blumberg discusses an instance where the line between ad and content was accidentally blurred. Although there was a fair amount of outrage from the user base, the good intentions of the podcast prevailed, and the issue dissolved. Although that conflict was resolved, it serves as a testament to the value consumers place in trusting a brand. The analytics may not be in place yet, but consumer patterns have identified native advertising to have a positive and cost effective impact on conversion rates.

The Future is Near

As both branches of paid advertisement continue to progress, one common development for both is the surfacing of premium pricing. Programmatic sellers are beginning to extend offers of premium content at higher CPM rates. Eventually, as Jeffrey Rayport of Harvard Business Review points out, programmatic ad buying will expand beyond the hyper-current internet ad space scene, out into the mainstream until it reaches a point of ubiquity. Native advertising seems to be following a similar path. Although native advertising is a broad term, referring to short brand plugs within content, or long-form pieces that emulate content, the method has grown in popularity enough for higher quality service to earn sustainable demand. According to Aptly, native advertising is also themed toward ubiquity: the future will be characterized by native advertising permeating social media platforms and apps.

Technology and business only move in one direction: forward

Overall, my opinion of the future of growth of programmatic buying and native advertising is similar to my opinion of impending integration self driving cars: the will be some gains, and some losses. By definition, technology serves to reduce the amount of human effort required to complete a task, leaving us with more time to sleep in the back seat, or work without being dragged down by formalities and inconveniences.